"Importers of the prized leaves have watched costs climb, orders stall and margins shrink under the weight of President Donald Trump's tariffs. Now, even after Trump has given them a reprieve, tea traders say it won't immediately undo the damage. "It took a while to work its way through the system, these tariffs, and it will take a while for it to work its way out of the system.""
"While a handful of bigger firms are behind the biggest supermarket brands, the premium tea market is largely the work of smaller businesses, from family farms to specialty importers to a web of little tea shops, tea rooms and tea cafes across the U.S. Amid an onslaught of tariffs, they have become showcases for the levies' effects. On their shelves, selection has narrowed, with some teas now missing because they're no longer viable products to stock with steep levies on top."
Tariffs on imported tea raised costs, stalled orders and squeezed profit margins for importers and specialty firms. Even after tariff relief, inventory bought under levies and shipment backlogs continue to burden businesses. The premium tea market depends heavily on small family farms, specialty importers and independent tea shops, which face narrowed selection and greater uncertainty. Managers must recalculate blend costs as ingredients from multiple countries face varying levies. Many owners postponed hires, raises, advertising and investments to preserve cash for duties. Some absorbed costs temporarily before raising prices or cutting expenses, reducing margins and growth plans.
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